tv Worldwide Exchange CNBC August 23, 2016 5:00am-6:01am EDT
good morning. a fragile recovery. why golden sax says crude climb isn't all it's cracked up to be. and today's test for the housing market front and center as investors focus on every available economic indicator. and late night laughs, hillary clinton takes health rumors on headfirst. it's tuesday, august 23, 2016 and "world wide exchange" begins right now. ♪ ♪ >> good morning and welcome to "world wide exchange" on cnbc. i'm sara eisen along with our friend dom choo in for wilfred
frost today and this week. >> it's going to be fun. on the early shift again. just have to wake up early and get coffee in me. we're looking at after a flat close yesterday on u.s. equity futures strength in the early morning session. dow futures up 50 points. s&p futures are up about 6 points. nasdaq futures 17.5. so we actually are showing some gains even though what are we, 31 sessions without a plus one or minus 1% move. >> it's been amazing. through yesterday looking at a market that hasn't moved. it's basically moved the s&p within a 50 point range going all the way back to july 13. >> gentlemen. >> so mid july. it's been very static market. >> static, but hovering near record highs and the strength continues. let's see the ten-year treasury note yield. ahead of the big janet yellen speech on friday, hovering
1 .56. not as strong as they were weeks ago, but still 1.50 is low. >> we saw stable market for the treasury curve as well. maybe some qs taken from the european side of things. if you take a look at the markets, the majors, the dax and german up. the cac in france up. the ftse 100 and uk up .5% at this point. ftse mib in through up by over 1%. a lot of ups and downs there. banks certainly a huge part of that story. ibex up nearly 30% as well. green across the major europe markets there. as for what happened in asia in overnight session. if you take a look, we are seeing a bit of a mixed picture. no surprise there. shanghai comp up .20%. the nikkei in japan always the yen as part of a story there. down by about .60%.
hang sang, we're going to call it flat. it's up 1 point on a measure near 23,000. you can't even measure percentage point. >> one of the biggest mover is oil. that brings us to the commodity story this mourningrning. don't get too excited. goldman sachs says it's fragile and not driven by fundamentals. moved higher on expectation of an opec freeze. though fundamentals will not add to a meaningful recovery. holding forecast steady at 45 to 50 for brent over the next year, i believe. >> 48.62 the last trade there as you are seeing. off over a percent. wti now below $47. >> gold man sman says in this n even if you to expect an output
freeze, they're freezing at record levels. also, we're having reports and goldman confirms this in the note, opec and non-opec members are ramping up production. everybody is fightsing for market share. cassic cldilemma. >> also talking about conflict areas. >> like nigeria. >> yes. may be thawing out a bit. maybe production doesn't get disru disrupted. >> gets added. >> right. >> so some selling pressure on oil after a tremendous run up. >> bull market. >> back in early august. we'll see if this pull back is for real. >> there you go. oil prices the focus. gold prices as well. if you take a look at the gold trade, one of the hottest trades in 2016. 1343.
they've been up massively. 15, 16% over the past 12 months. as for the dollar, that factor into that story as well. currency always a part of that story. at least for right now, euros gaining strength right now. 11325. yen, 100 .15 last trade there. dollar weakness against the pound. 1.3179 there. kiwi up by .20%. big move higher there. >> they weren't dubbish enough to say central bank governor said don't expect a stair step of lower rates coming necessarily. and so it shot and you happup i also a big call in the currency market to tell you about. j.p. morgan saying to short the u.s. dollar against the euro and the japanese yen. that bank there seeing the dollar as a range trade for the rest of the year.
in an interview with nbc earlier, j.p. morgan says the risks are that the ecb, the europe central bank and the bank of japan actually ease, but do so less than expected. >> reporter: i think if we were starting to get a sense that the central banks were starting to worry that there wasn't much left in the tank, investors are good at extrapolating small changes into policy into big ones and you could actually say both euro and yen do better against the dollar so that's the sort of basis for our call u.s. dollar short in the portfolio. >> also says she doesn't expect the fed to tighten policy into december leaving few catalyst to boost the dollar. i would argue the dollar is not reflecting a fed tightening even in december. the dollars has been weak. it's at multimonth lows. the dollar index been on the downward trajectory for weeks. if there was bets ramping up that the fed was going to hike
rates in december, the dollar would be moving the other way. >> it's not for lack of trying though, right. there have been several policymakers talking about the meetings are live. there could be the possibility. stanley fisher a man you know well, vice chair of the fed, saying we could see part of the conditions really improve for a fed interest rate by the end of 2016. that remains to be seen. the market is not agreeing with him. >> that's the risk on friday around jackson hole. janet yellen is going to speak. she's the most important factor to watch when it comes to determining policy. dudly and fisher who two deputies in the inner circle have suggested the economy is doing better and the fed might need to raise interest rates this year. if chshe echoes that, it could a risk for the market. >> speaking of data, we have a lot coming up this week. the housing market is in focus today. july sales are out 10:00 a.m. sales are expected to drop 2%
following a more than 3% jump in june. other data today, you've got flash manufacturing, pmi. as for the earnings picture, look for the results from best buy, indue wit. >> now speaking of the consumer, best buy second quarter results will be front and center this morning. our own landon dowdy joins us with three things to watch. >> street is looking for best buy to report earnings of 43 cent as share. beyond those numbers here are the three things to watch. first sales, ceo has made progress in reviolating the retailer as profits have rebounded. that growth may be hard to maintain. second, people are buying fewer electronics. data from the department shows sales at electronic and
appliance stores fell nearly 4%. results have been impacted by a lack of invasion. apple hasn't launched a new product in some time and jeffrey downgrading best buy saying hitting critical mass and the third thing to watch management moves. best buy cfo stepped down in june. ceo dumped half of the stock this summer. move could acknowledge the difficulties in a brick and mortar retailer and dominated by amazon. stocks down in the past months. >> after that nice little turn around they had. landon, thank you. we'll be watching best buy. speaking of earnings, we just got results from the home builder. toll. profits matched wall street estimates. revenue came in a little better than expected according to the press release here. appears that buyers in the luxury market continue to be drawn to kbwhat they call their great brand anytime and
nationwide reputation. a lot of quotes here in the press release. dig through them and try to get you more numbers. those are the initial take. >> what is interesting about toll brothers as well, we're talking about the luxury side of the business with regard to toll brothers. this has been down 12%. also down 27% over the past 12 months. it speaks perhaps to a certain part of the market. we've seen strength in the other parts of the home building market. other prize points throughout the spectruspectrum. we'll dig through the numbers, but toll brothers one to watch especially given the fact we have big data on home sales coming out. >> 18% growth in contracts and units. starting to see strength there. nonbinding reservation up 23%. >> and average sale prices will be a number to watch there. dig through those numbers as well. certainly going to watch what happens there, sara. some other stocks to watch.
shares of tableau. new chief used to run sales and marketing at that fast growing amends web services. zoe's kitchen posts revenue miss. health care technology missing expectations. other stocks to watch, industrial machinery firm nordson. revenue rose 6% in the most recent quarter. those shares off -- up by 3%. 2.5% there in early extended trading. mylan falling after the sharp price hike for ep my pens.
has increased by 400 percent. >> microsoft making a patent and software deal with la novo. put it on the android devices. you can see both shares off. microsoft fractionally. la know know off .5%. managing director shi han shu left the firm. s sihan shu. best known for structuring the bet against the u.s. housing market leading up to 2008 crisis. earned 15 billion for the firm in 2007 and billions more in 2008. >> the trade paulson is known for in the housing market. >> yes. >> coming up in "world wide exchange," oil prices. talk about the factors at play here. including a call from goldman
sachs. that's coming up next. stay tuned. you're watching "world wide exchange" first in business worldwide. from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most. the cash rewards credit card from bank of america. real is touching a ray. amazing is moving like one. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there's only one place where real and amazing live.
>> as for the oil picture, certainly a focus again. given what's happening with that market. wti crude now below $47 a barrel. that's off by over 1%. ice brent crude futures down below 49 now. 48 .67 the last trade there. off by about 1% as well. now, remember goldman sachs is warning the recovery in oil prices is, quote, unquote, fragile. recoverying the energy story from london for us and steve, i got to say, opec price cuts are always talked about, but could we ever really see one? >> reporter: i would say until we see it, don't necessarily believe it, but the talk, the verbal i went vengs is a powerful weapon. no real change in production,
but the verbal has worked, but what i think is most interesting about tying in the goldman and opec story is the smaller players. don't ware about the big guys and the non-opec. this story from goldman is as much about the smaller players, iraq, nigeria, libya and saying these could hold the x factor for the future of the price in the second half. smaller players with big security problems could see if the security problems come off a little bit which they appear to be doing, they could actually get us from a deficit in production in the second half of the year into a surplus, for instance. let me give you an example. libya terrible security problems. big civil war going on. producing 300,000 barrels a day. have the capacity to produce $1.5 billion a day. it's the same with nigeria. under 2 million boorl barrels
in 2003 before the u.s. invasion, they were producing 2 million barrels a day. add all these together and it's a lot of extra production which could produce a lot of risk assessments in the second half of the year and could send the oil price lower. that's one of the key messages from goldman today. >> specifically, cement 26 through 28, this is the big meeting everyone is watching on opec. can you talk about saudi arabia strategy? that's clearly the key here. as gold man notes, six failed attempts before. how does saudi come into this meeting and is anything different? >> i'm surprised it's only six failed attempts. i've been going for quite a while and have russia on the sidelines and talk about cohesion. i just don't see it happening. tapping the following into your search engine, record oil production. i did it today just an experiment. came up. record iranian oil production.
record saudi, record u.s. exports as well. this is the problem. everybody is trying to produce full tilt at the moment to get to the highest level possible. if you freeze your production at the highest level possible, that doesn't leave a lot of room for more production. if they're all trying to get to 11 million barrels and above, you're already at full tilt. i think there is a real potential that if they go for this deal and it's done on shaky foundations, then it's going to leave the market very vulnerable to the downside. the third factor is the dollar as well. it's important as the oil supply fundamentals. if the dollars starts to show strength. commodities and oil could see a bit of weakness. >> which would be a reserve of what we see over the last few weeks. steve, appreciate the analysis a as always. when we come back, the latest on the company trail. plus hillary clinton takes to
late night television to joke about health rumors and the e-mails. before we head to break, here's the forecast for weather channel, jen carfagno. >> we have some of the most beautiful weather of the summer happening across the northeast. leading to a comfortable afternoon, lots of sunshine. temperatures hit the low 80s, it's a return back to summer. had a break from the heat and humidity. today humidity down. temperatures coming back up. couple of showers and storms left along the gulf coast. next chance of severe weather comes today. stretching across parts of nebraska, iowa eventually gets to chicago. west coast looking nice and dry and temperatures not as hot as they had been. "world wide exchange" continues after this. choose to smooth.
welcome back to "world wide exchange." let's get you caught up. oil under pressure. check out wti below $47 a barrel this morning. down about a percent. brent went below 49. weakness persists this weak after a strong weak last week. that's or twitter and facebook question of the day. what price level does wti oil
hit first? 50 or does it go back down to 40 or as dom says, stuck in the mud. we want to know what you think. tweet us, facebook us, give us the results and we'll bring you them later in the show. so now to politics. donald trump appears to be looking at adjusting his deportation plan. meantime, hillary clinton's e-mail scandal not going away. what's been an expensive next chapter. there's another going on, edward. >> reporter: what a 24 hours. donald trump says he will enforce the immigration rules that are already on the books. walking back his promise that he will deport all 11 million illegal immigrants immediately. >> reporter: donald trump looks to revamp immigration plan. part of it won't change. >> we're going to build a wall, folks. we're going to build it. >> reporter: his campaign manager signaled trump will
soften. trump now says he would separate illegal immigrants into two categories. the quote, bad ones would be deported immediately and everyone else would go through the process of existing immigration laws. >> hillary clinton's plan amounts to total and absolute total open borders. open borders. >> reporter: meanwhile, hillary clinton took time off from campaigning for an appearance on jimmy kimle. >> have you considered using face time instead of e-mail. >> actually, i think that's really good advice. >> reporter: her campaign isn't laughing. another 15,000 e-mails were released by judicial watch. e-mails that were deleted from her server, but recovered by the fbi. it raises questions about why this massive deletion of records took place at all. >> reporter: they outline how big do anymores to the clinton foundation got access to clinton
when she was secretary of state through her top aide. now some of the e-mail requests went to hillary clinton's deputy chief of staff. not all of the donors got what they asked for, but they all got access. >> thank you so much for bringing us the latest on the political front. now moving from politics to sports. ryan lochte has been dropped by all four sponsors in the wake of the incident he falsely claimed he and three olympic teammates were robbed at gunpoint. speedo, ralph lauren, mattress weaver and hair. speedo is donating $50,000 portion of lochtes fee to a charity for brazilian children. lochte previously had endorsement deals with nissan and gatorade, but those have expired. >> when we come back, gold man sacks warning the recovery in
oil prices is fragile. they're not buying it. plus apple. tells you how amazon plans to step up music game. stay tuned. you're watching "world wide exchange." first in business. what. a. sweetheart. attaboy. wait, todd, what are you doing? how totally selfish and un-toddlike of you. come on, todd, come on, man. josh, don't you have fryeah, so? ng over? it stinks in here. you've got to wash this whole room are you kidding? wash it? let's wash it with febreze. for all the things you can't wash, use febreze... ...fabric refresher whoa hey mrs. walker inhales hey, it smells nice in here and try pluggable febreze, with up to 4 times the freshness...
prices. plus a pokemon buster squad. the lengths one major city is going to keep the craze from getting out of control. it's tuesday, august 23, 2016. you're watching "world wide exchange" on cnbc. ♪ ♪ ♪ ♪ good morning and welcome back to "world wide exchange." on cnbc. i'm sara eisen along with dom chu sitting in for wilfred in morning. >> best music. let's check on the global markets this morning. if you look at the u.s. picture, we are seeing fractional gains for the time being. s&p indicated to open by 5, 6 points. dow jones up 50 points. nasdaq futures showing a gain of by about 17, 18 points. as for europe, perhaps we're taking our queues from there. we'll see what happens. still, most major markets in
europe including german, france, the uk, through, and spain all in the green right now. to all just about half 1% fully. the ftse mib in through up one and a quarter percent. all up between half and a percent again. this morning. so far as for the europe session, let's go to the overnight session in asia right now. shanghai up .20 to close there. japan's nikkei off .60%. hong kong showing just a very hairline gain. one point to the upside. >> as for the broader markets, oil is a story. wti below $47 a barrel. the weakness persists this morning. we are down about a percent. 46.94. as for brent, it is below $49 a barrel after reaching above 50 last week. 48.74. the weakness continues.
there is word that some of the other countries, oil producers like nigeria, you remember mentioning, have been coming back online. ore or the supply issues have been fading. more supply. which would be bearish for prices. as for the ten-year treasury note yield. let's show you where we are. slightly higher yields. janet yellen, housing data today. earnings also dominates. the u.s. dollar under pressure, saw a bit of strength in yesterday's session. that's giving back today with the euro firmly above 1.13. dollar weaker throw e thoe against the japanese yen. strength worth watching as it hovers around the 100 level. british pound continues to strengthen. still getting relief off the back of better data last week. as for gold, which typically moves in the opposite direction to the u.s. dollar. it is weaker, but just by abo about .02%.
always good watching with jackson hole capping the week and janet yellen's speech. july new home sales out at 10:00 a.m. eastern time. sales expected to drop 2%. following a 3% jump the previous month in june. other data today, flash manufacturing, pmi and monthly rich mond fed survey. look for results from best buy. also indue wtuiintuit. >> it's consumer focus. >> tiffany will be a good one. >> guess brand. >> should always interesting. i want to hear what they're saying. >> you're wearing tiffany blue. >> not quite. >> of course earnings on that front big. also today though, earning central on a quarterly result from toll brothers. that hit the tape earlier this hour. profits matched wall street
estimates. revenuing coming in better than expected. average price topping analyst forecast. net contracts also coming in stronger than the street had expected. those shares up one quarter of 1% in a very light premarket trade. other news on the consumer front. traffic at outlet malls. a monthly survey finds 26 of american shoppers visited one discount shopping center sometime in july. that's up 4 points from march when traffic to outlet malls in the u.s. fell to lowest point in about a year, sara. in corporate news, u.s. regulators are rejecting a request from the auto industry to extend a fuel comment deadline. earlier this summer, the epa and national highway traffic safety administration said auto companies have the technology needed to meat met mandates to improve efficiency. regulators have said no. demanding comments be filed by late september.
auto makers say it's not possible to reach the government's mandates to cut vehicle greenhouse gas emissions as they currently stand in part because low gas prices have lead consumers to buy more pickup trucks and suvs. >> dellfy and mobile eye are teaming up to make an autonomous driving system. dellfy and mobile eye with makers and software. today's announcement from the two companies come as auto makers and tech joints move independently. certainly mobile eye has been at the forefront of the story. one of the names most associated with the sensors that drive autonomous vehicles. in other corporate news, congress demanding answers about the skyrocketing post of
epipens. gone up 400% since twiegt and senators are sending letters to mylan asking the company to justify the increase. mylan has declined to comment on the spike hike. blames high deductible that requires consumers to pay for out of pocket. petition has collected more than 48,000 signatures. this has moved to the front pages. i saw it on local news last night. tells you what a big deal it is. start of school season for kids. all the parents are buying their kids epipens who are allergic to everything. >> peanuts, anything where there's a reaction. >> there's a little bit of an outrage. mylan stock moved down yesterday when congress was going to look into it. >> it's going to be an interesting one to watch when the lawmakers get involved with the health care industry. other stocks to watch, shares of tableau rising.
apoi appointed a new ceo and used to run at amazon web services. shares of zoe's kitchen miss. off 16% in light early trading. premier disappointing the street. health care technology lost coming below expectations. revenue did top consensus forecast. off by about 9.5% in early extended hours trading. >> tracking a few analyst calls this morning. notable ones to show you. square upgraded to buy from hold at stifle. execution and the development of the flat form. bhp billton. upgraded to buy from hold at
jeffreys. free crash flow and growth potential. >> top trending stories this morning, hillary clinton is brushing off renewed questions about her health. just a guest on jimmy kimle live. donald trump has questioned her stamina at campaign rallies and at speeches and former mayor ru rudy giuliani saying she just looks sick. she says the comments make no sense. she doesn't question trump's health. >> please welcome, hillary clinton. >> she was trying to make fun of the fact people were making fun
of her health. >> didn't she ask jimmy to take her pulse or something. >> just to check. golf cart car owe key. a viral video alert here. indiana state trooper driving along lip singing to greece. ♪ ♪ >> summer loving, had me a blast ♪ ♪ summer loving happened so fast ♪ ♪ i met a girl, crazy for me ♪ met a boy cute as can be >> they are some troopers in indiana. amazon also stepping up music game, speaking of music.
in talks to launch a music s subscription service. only work on amazon's echo hardware. there's the catch. reports saying the company wants to launch in september, but hasn't finalized deals with major music labels or accomplishers. that's always a sticking point. the content. content is king, so they say. bangkok is cracking down on pokemon go. launching a buster squad on sunday to help regulate players who are disregarding traffic rules. the squad is made up of 50 police officers patrolling ten of bangkok's busiest roads. this coming after complaints of residents of reckless drivers. increase in car accidents involving the gamer. bangkok is already a terrible traffic city. >> forget about the fact it's bangkok. eve seen people right here in the united states walking around. whether they're playing pokemon go or not, i see them holding
their phones walking around like this, if you're out there playing, pay attention to the surroundings. >> are you saying we need a buster squad as well. >> i don't play. >> i know. >> but if it's causing traffic plans and safety issues, maybe not a bad idea. big night for cnbc prime. launching the fourth season of the hugely popular series. sneak peek of the profit getting to confront issues and each other. >> one of the things i thought we could do is very really open dialogue about the dynamic between the two of you. >> i feel like i try to take on things and you try to take them back. i don't know if that's your lack of trust in me or you think i'm not going to get things done. >> who do you report to? do you report to sandy? >> yes. i think that's one of the reasons i feel really held back i don't get full control under things that fall under marketing. you don't want to make the
changes that will positively effect the way we do things. >> it's not that simple. >> it is. >> it's not that simple. >> just the way things are brought up and shot down is really frustrating. >> don't miss the season premier of the profit. that's tonight on cnbc. 10 eastern and pacific time. >> one of my favorite shows on prime. >> it is very good and looks like very dramatic for the season. >> yes. >> when we come back the must reads. as we head to break, check out how european stocks are trading at this hour. green on the screen despite the fact energy shares are under pressure. see if we can continue to the wall street open with the german dax up 1%. stay tuned. you're watching cnbc, first in business worldwide.
welcome back to "world wide exchange." if you're just waking up or listening on your wake way to work on series xm radio, let's get you up to speed. green across the board. marginally speaking. the dow up 46 points. s&p up five or six points. nasdaq up 16 points. we'll see if those gains hold. remember the european markets are showing signs of life as well. green for most of the major markets have is. as for the oil picture, show red on the board. wti off by little under 1% at this point. 47.03 the last trade there. brent crude now below $49 a
barrel. down by about .30%. oil a focus. we want to pay attention to the currency moves. at least for right now across the major currency pairs. time for this morning's must reads. the stories catching our attention. mine is in the "wall street journal." the fact the robots are coming because andy kesler says we should welcome them and a former hedge fund manager. author of eat people. he says looks what happened over history. computers killed jobs for those with rulers and kpak toe knives that were laying out magazines or constructing physical spreadsheets. now wall street doesn't exist without microsoft office. in each case, technology augments humans rather than replaces them. goes through a few other examples as well to show that, yes, technology can have the impact of destroying jobs, but
it can also enhance progress and enhance jobs and education to try to get students enlisted instead of french literature into engineering and computer sciences and we should embrace technology. it's just a different take than sort of conventional wisdom that the robots are coming for your jobs and all going to be out of jobs. >> or if you want a job going forward, look at ways to make other jobs for efficient and that's the way you find work. because that's what progress is all about. so there's a lot of different takes obviously. certainly a focus for people looking for next jog. >> this is prorobot. >> my pick is on cnbc.com right now. so go there to the website. it's titled why the fed won't hike, won't hike, interest rates until after the elections. it's probably not a controversy view. the author writing the fed has done its part in rescuing a badly damaged economy. the rescue job is finished. the growth job is not. the u.s. economy is settling
around an unexceptablely low growth potential. speaks broadly to the idea that monetary policy throughout the world has reached some perceived limits. when you get negative rates in some limits. maybe it's time for the fiscal side of things. >> the fed will never say that the election is going to impact them. we're approaching the top of the hour. that means the team is getting ready for "squawk box." joe kernen joins us in new york with a look at what's coming up. what's on your radar today, joe. >> i looked up late and saw the prorobots. are you talking about the drudge story. robot brothels are expected. >> actually not. i was talking about the journal piece. not that kind of pro.
sara do you read drudge in the morning? >> sometimes. >> you got to do drudge, huffington post . >> he's a sprinter. sprinter. i i guess. one thing i saw and you guys have watched the market for a while. one of the most consistently accurate prognostications is never short oo dull market yet the journals take means we could be in for a market storm. not sure about that. dom, you're article was about no interest rate hike. i think we can assume the numbers are going to be good, economic numbers. it's a little bit cynical, but going into the election, i think the numbers are going to be good, but also going into election, they're not going to raise. >> you're saying the fed may be
influenced by the political landscape. >> they don't raise. one guy tried that. his name was greenspan and remember what happened to h.w. never forgave him for it. interesting show, dan rather is going to be on as a guest host, the legendary news man from 60 minutes and cbs news. and where are the investigative journalists on the story. who gleaned the information yesterday. it was judicial watch and the other one, citizens united keeps suing to get these things while the media sits on hands waiting for donald trump to say something incorrigible. speaking of, we have ann cultron. probably a touch on that as well. get dan rather to say some stuff
like it's hotter than a time square rolex. it's hotter than a lor ray doe parking lot. >> it's shackier than cafeteria jell-o. dom's mouth is dirtier than a p possums. >> i'm glad you knew who he was. when we come back, normal end of summer quiet or calm before the storm? something joe was just talking about. >> dow posting first con sec live losses in three weeks. mike holland will join us on the factors that weigh in here. stay tuned. you're watching first in business, worldwide.
you. we are seeing slow drift in u.s. stocks. the path of least resistance seems to be to the upside. is it a buy or calm before the storm. >> path of least resistant, thank you to the fed. just finished up with joe kernen. september off the table. i hate to agree with kernen, but that's probably right. maybe december, maybe not even december. the fed has boxed itself in. and what happened back in 2008 was instruckive for all of the central banks around the world. we all said we will do whatever it takes to get the economy going and it's not hang. don was just reporting a few seconds ago, the numbers are muted to the upside. the fed and all the other central banks have been supporting the markets. we don't know and they don't know, there's no history, to show how to get out of this. it could be a as i understand rel la story. moving up slowly as you described. it could be jury rasic park.
we don't know how we're going to get out of this. japanese central banks, you guys know this, owns two thirds of all the equity mutual funds etfs in the country. in europe, last week, we had bank -- we had the bank of england talk about buying $13 billion worth of corporate debt. we're in crazy la-la land and we don't have any point of reference here how to get out of this. the markets are being pressed upward by asset appreciation from the banks around the world. >> can we talk about the skbanks financials. whenever i think about the fed: i think direct impact on banks. financials are not necessarily participating. what gets those banks. are they a buy? are the financial stocks right now in this market attractive given the fed policy outlook? >> quick answer, are they attractive, yes. given the fed policy outlook, probably it's going to be a while. so you're getting valuations whether it's j.p. morgan or
chub. both of which i own. they're getting devaluation. it's going to be a i while because nobody knows what the banks -- the banks themselves don't know. janet yellen isn't going to tell us what she's going to do because she doesn't know and doesn't know the outcome. there's no playbook. >> we don't have enough to tell. >> that's exactly the case. we continue to be favored by the feds and all the other central banks doing that, sara. >> as for stock picks, very quickly. best buy earnings, testiiffany earnings, what are you going to be watching. >> consumer continues to be key to this market. if the consumer really went negative in any earnings. don't pay much attention because the economy doesn't have the juice. >> mike holland, always good to see you. mike holland. chairman of holland and company.
keep the tweet answers coming. we'll get back to you on the oil answer tomorrow. thanks, dom. "squawk box" next. get it, mar. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most.
good morning. a warning on oil prices. goldman says the recent slide may continue and crude prices. we've been in the comfortable range between 40 and 50. housing is in focus. toll brothers posting 24% jump in revenue. we'll get new home sales data this morning. amazon wants to take on spotify and apple music. new reports of a cheaper service that will only run of amazon's echo products. it's tuesday, august 23, 2016 and "squawk box" begins right now.
♪ ♪ >> goord morning, everybody. welcome to "squawk box" on cnbc. i'm here with joe kernen and andrew sorkin. finally everybody back on the table. only for one day. >> only one day? >> where with r you going? leaving again? >> i was supposed to be off monday and tuesday. >> i brought stuff. >> no. >> what did you bring. >> we went to rio. i figured we had to bring some stuff. >> some zika mosquitos. this is a little olympic t-shirt. >> then we have all sorts of stuff here. >> where's victoria? >> this is really soft. >> i want you to come on the camera. come here. she sent me an e-mail a